RBI Panel reduced repo rate by 25 basis points. The decision will be positive for the economy and if banks pass on the benefits, their loan book can grow.

RBI panel announced 25 basis points rate cut but Indian stock markets were expecting a small rate cut. The rate cut hasn't led to any major market movement.

Indian public sector banks have been suffering for last few years due to high non-performing assets. The banking sector needs government's support and strong reforms for its revival.

Indian government has move ahead with its decision to consolidate some of the public sector banks in order to improve efficiency and have better control over management of these banks.

Indian government has been planning consolidation of public sector banks for quite some time.

Indian stock market witnessed rally for the last three trading sessions and investors felt relief as many stocks had declined significantly. Among the major gainers for the week were Tata Consultancy Services Ltd (TCS), HDFC Bank, HDFC, Infosys, Hindustan Unilever, Kotak Mahindra Bank and ICICI Bank.

Markets gained from lower levels and buying was witnessed on Wednesday. Investors turned bullish on Thursday and Friday ended with smart gains. Among top 10 Indian stocks, seven companies gained during the week. Small investors mainly invest in mid-cap and small-cap companies and the trend in both these segments is still not positive. Mid-cap stocks of many well performing companies are trading at a lower price.